More money, more problems, am I right?! It might just be the truth. As we merge into adulthood, we have to learn to manage our money. Early adulthood can cause our minds and stress levels to go into overdrive, especially when it comes to money. Student debt, buying your first car and/or place to live, that one time you “accidentally” used a credit, the list goes on and on. But guess what? We have been there. We are there now and to be honest, we will probably be practicing these things for the rest of our lives. We much as we wish they would, money issues probably aren’t going to away. These 3 things are a few of the basics that can help you get on the write track.
1.Budgeting
You’ve heard it time after time. Budgeting is key to getting your money under control. The word budget seems a little scary but you shouldn’t be scared to try to create and stick to one. Depending on your season of life, your budget will be different. It’s a good idea to try to learn to budget before you get into a tight situation where you have to stick to it. If you are just trying it out, start with the essentials: food, house, transportation, bills, debt, and entertainment. Tracking your spending and seeing where your money goes will open your eyes to things (both good and bad) that you didn’t know were happening! Don’t get discouraged if you sail of course and your budget doesn’t work the first time. That’s the point of budgeting, to learn HOW to manage your money. Budgeting worksheets are a great starting point and you can see a free one, here!
2. Emergency Fund
Sounds icky, I know. But everyone knows life is going to throw you curveballs. It’s impossible to be prepared for all of them. Having a certain amount of money saved and deemed as your emergency fund will help ease a little stress during the unexpected situations. Set an amount that works for you, and make an effort to keep your savings account balance over that amount. Don’t freak out when the day comes and you’re faced with that one transaction where you dip below your threshold. That is the reason you did it. When you need to use your emergency fund, try to take a minute in the madness and tell yourself you rock for having one in the first place.
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3. Keep Your Finances in One Place
Peace of mind is our end goal and experience tells us that we tend to have an easier time staying on track when we are organized. Organized in the broad sense of the term. Keeping your bills, insurance documents, statements, and budgeting information in the same place will make your finances go a little smoother. You’ll be able to go to one place, on the days you need to pay bills or find your insurance renewal information. It is one of the first steps into creating your own system that will change and be improved as you learn more about your money and continue down the path of adulthood. A file folder is great because it is portable and can be taken to work or school. A hanging organizer would be great to keep everything in one spot at home. If you’re not one to separate things into tabbed folders, that’s fine too! A drawer or a pile on the counter will serve the same purpose if that works for you. Pinterest is a great resource for money organization tips!
Keep in mind that all these tips are meant to make your life easier. Budgeting, emergency funds, and organization might seem like stink but you’ll quickly find that these things will be keys to helping you manage your money. As your life changes, your methods will too so be prepared to try a few different tactics. And as always, steer clear of that pressure to force things to work for you and instead try finding what works for you.
